Al-Arafah Islami Bank PLC has executed a Master Murabaha Agreement with international financial institution JP Morgan to enhance the efficiency of its foreign currency liquidity management and short-term treasury operations.
Under the agreement, the bank will have the opportunity to earn overnight returns through a Shariah-compliant arrangement on foreign currency balances maintained in its nostro accounts with JP Morgan.
This initiative is expected to ensure more efficient utilization of the bank’s foreign currency balances and strengthen its short-term liquidity management.
At a ceremony held on this occasion, Sazzad Anam, executive director and head of Bangladesh Office at JP Morgan, and Mohammad Abdul Mobin, senior executive vice president and head of treasury at Al-Arafah Islami Bank PLC, exchanged the agreement on behalf of their respective organizations.
Mir Md Hassanul Zahed, executive vice president and head of financial institutions (FI), offshore and remittance business of the bank, along with senior officials from both organizations, was also present.
Through this collaboration, Al-Arafah Islami Bank PLC aims to improve the efficiency of its treasury operations, optimize the utilization of its foreign currency balances, and facilitate international trade and remittance settlement activities.